Skip to content
Search

Latest Stories

India's economic growth may have slowed in 2018-19

THE Indian economy appears to have slowed down in 2018-19 due to lower private consumption, tepid growth in fixed investment and muted exports, country’s finance ministry report has said.

The Central Statistics Office (CSO), which released the national account data for the third quarter, had in February revised downwards the growth estimate for 2018-19 fiscal to 7 per cent from 7.2 per cent.


The 7 per cent growth is the lowest in 5 years.

In its monthly economic report for March, the Indian finance ministry said monetary policy has attempted to provide a fillip to the growth impulse through cuts in repo rate and easing of bank liquidity.

"India's economy appears to have slowed down slightly in 2018-19. The proximate factors responsible for this slowdown include declining growth of private consumption, tepid increase in fixed investment, and muted exports,” it said.

The ministry, however, said that India continues to remain the fastest growing major economy and is projected to grow faster in the coming years.

Talking of challenges, the ministry highlighted that growth in agriculture sector needs to be reversed.

"The real effective exchange rate has appreciated in Q4 (January-March) of 2018-19 and could pose challenges to the revival of exports in the near future," it said.

On the external front, the current account deficit as a ratio to GDP is set to fall in the fourth quarter (Q4-January-March) of 2018-19, which will limit the leakage of growth impulse from the economy.

The fiscal deficit of the central government has been gliding down to the Fiscal Responsibility and Budget Management (FRBM) target.

The 2018-19 GDP growth of 7 per cent is the lowest in 5 years. In 2013-14 the growth was 6.4 per cent, in 2014-15 it was 7.4 per cent, 8.2 per cent in 2015-16 and 2016-17 and 7.2 per cent in 2017-18.

The ministry said the room for monetary easing by the Reserve Bank of India (RBI) has been created by low inflation in 2018-19, although it has started to inch up in last few months of the year.

The Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, cut rates in February and April citing prospects of benign inflation. In the four months of 2019, the RBI has cut policy interest rates twice by 0.25 per cent each to one-year low of 6 per cent.

This is the first back-to-back rate cut since the MPC was formed in late 2016.

(PTI)

More For You

BP-Reuters

Fourth-quarter profit dropped 61 per cent compared to the previous year, marking BP’s weakest results since Q4 2020, when the pandemic reduced global oil demand. (Photo: Reuters)

BP reports lowest quarterly profit in four years, plans strategy reset

BP reported a quarterly profit of £943 million on Tuesday, falling short of expectations and marking its lowest in four years.

The company said it plans a "fundamental reset" of its strategy, days after reports that Elliott Management had taken a stake in the oil major.

Keep ReadingShow less
Shein-Reuters

Shein had aimed to go public in London in the first half of this year, subject to regulatory approvals in the UK and China. (Photo: Reuters)

Shein cuts valuation to £40 billion for London listing

SHEIN is preparing to lower its valuation to around £40 billion for a potential initial public offering (IPO) in London, according to three Reuters sources familiar with the matter.

This is nearly 25 per cent lower than the company's 2023 fundraising valuation as it faces increasing challenges.

Keep ReadingShow less
Northern-Superchargers-Getty

Ben Stokes and Matthew Short of Northern Superchargers walk out to bat during The Hundred match between Manchester Originals and Northern Superchargers on August 11, 2024 in Manchester, England. (Photo: Getty Images)

Sunrisers Hyderabad to acquire Northern Superchargers in £100 million deal

INDIAN Premier League franchise Sunrisers Hyderabad is set to become the first full owners of an English Hundred team after agreeing to buy Yorkshire’s Northern Superchargers for a reported £100 million.

The Sun Group will be the third IPL-linked investor in the eight-team Hundred competition, following Reliance Industries, which owns Mumbai Indians, and RPSG, which runs Lucknow Super Giants.

Keep ReadingShow less
BT-Getty

A view of the British Telecom (BT) headquarters in central London. (Photo: Getty Images)

BT to remove diversity targets from manager bonuses

BT will remove diversity, equity, and inclusion (DEI) targets from its manager bonus scheme, replacing them with a measure of overall employee engagement.

The change, set to take effect in April, follows consultation with major investors and has received “strong support,” according to the company, The Telegraph reported.

Keep ReadingShow less
India's central bank cuts interest rates for first time since 2020

The central bank announced a 25-basis-point cut in the benchmark repo rate to 6.25 per cent, the rate at which it lends to commercial banks.. (Photo credit: Reuters)

India's central bank cuts interest rates for first time since 2020

THE RESERVE BANK OF INDIA (RBI) reduced interest rates on Friday for the first time in nearly five years, citing concerns over economic growth despite inflation risks.

The central bank announced a 25-basis-point cut in the benchmark repo rate to 6.25 per cent, the rate at which it lends to commercial banks.

Keep ReadingShow less